The Real Estaters on Madoff’s Client List

The Parker Meridien hotel in New York City, owned by Jack Parker Corp.

Alex Frangos reports:

It’s not a great time for real estaters, so it’s doubly bad news to find yourself on Bernard Madoff’s client list. A cursory search of the 13,000 accounts (and previous disclosures) came up with more than a few prominent property players:

Edward Blumenfeld: Founder of Blumenfeld Development Group of Syosset, N.Y. on Long Island. A developer and owner of property in New York, Florida, North Carolina and Connecticut. Mr. Blumenfeld declined to comment, according to a spokesman.

Brause Realty: Family run real-estate firm with properties in New York, Florida, Connecticut, Maryland and New Jersey, according to the company’s Web site. A representative didn’t respond to a request for comment.

Stephen Green: Founder and chairman of SL Green Realty, one of the largest owners of Manhattan office buildings. An SL Green spokesman says “Steve Green prefers not to discuss his personal investments that have nothing to do with SL Green.” The spokesman says: “SL Green as a company has had no exposure to investments with Madoff, and does not comment on the personal investments of its executives and board members.”

Jack Parker Corp.: Hotel and apartment maven Jack Parker’s name appears on the list. He died in 2007. Several other Jack Parker Corp. executives also appear, as do Jack Parker’s relatives. A company spokesman didn’t return a request to comment.

Scott Rechler: Chief executive of RXR Corp., a real estate firm with holdings in the New York metropolitan area. Former chief executive of Reckson Associates. Operates separately from the rest of this family. Mr. Rechler says his investment with Mr. Madoff was “immaterial” and will have “no effect on anything.”

Burton Resnick: Head of Jack Resnick & Sons, a New York real estate giant founded by his father. One of the city’s largest landlords and builders, responsible for several prominent Manhattan apartment towers. Didn’t immediately return a call for comment. A spokesman, Howard Rubenstein, confirmed that Mr. Resnick and his family were invested with Madoff. “It has no significant impact on their economic viability and it was a small part of the Resnick assets,” he says.
Harvey Schulweis: Former chief executive of Town and Country, a publicly traded real estate investment trust that owned over 13,000 apartments before selling itself to Morgan Stanley’s real estate arm in 2006. Mr. Schulweis could not be immediately reached for comment.
Larry Silverstein: Developer in charge of building three skyscrapers at the World Trade Center. Purchased a 99-year lease on the Twin Towers the July before the Sept. 11, 2001 attacks. A spokesman says: “Losses incurred by Larry Silverstein and his family absolutely pale in comparison to those innocent investors who lost their life savings as a result of this scheme.”

Anthony Westreich: Founder of Monday Properties, an office landlord with holdings in Midtown Manhattan and Washington, D.C. A spokesman declined to comment.

Wilpon Family: Owners of the New York Mets and Sterling Equities, a major real-estate investor.
Mort Zuckerman: Founder and chairman of Boston Properties. Around $30 million in an eponymous charitable fund invested with Madoff. Mr. Zuckerman says no personal funds were lost.